How to Cash Out Bitcoin Easily

So, you’ve made your millions, and now you want to know how to cash out Bitcoin? Well, this guide will tell you everything you need to know!

It'll include methods of how to turn Bitcoin into cash such as bank transfer, PayPal and even through cash deposit! I'll show you how to withdraw Bitcoins to cash using an exchange (namely, Binance) and through a peer-to-peer exchange. And to make it easier for you, I'll also include some helpful images.

By the end of this guide, you'll be able to decide which method is best for you.

Interesting fact: Did you know that more than $2 billion worth of Bitcoin transactions happen every day?

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Venture Manager at Blockchain Founders Group (BFG)

How do cryptocurrencies and Web3 technologies create a more secure internet experience?

Human urges can make classic systems prone to errors, whereas Web3 technologies like the blockchain maintain a single global state across distributed nodes reducing the dangers of a single source of failure (SSOF), flanked by cryptographically verifiable ownership and release of assets.

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Different Cash Out Methods

There are many things to consider when cashing out Bitcoin. Your priorities and preferred methods can be different from other people's situation but these questions are still important! Your answers will decide which method is the best for your situation.

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You should answer questions like:

• Do you want the easiest method, or the cheapest method?
• Do you want the money deposited into your bank account or PayPal?
• How long do you want to wait to receive your cash?
• Which currency do you need to change your Bitcoin in to?

These are some (but not all!) of the questions that you'll need to ask yourself. However, keep in mind that you don't need to use just one method when learning how to cash out Bitcoin! You can choose between using a crypto exchange or a peer-to-peer platform. Still, there might be situations when you'll need to use multiple ones, so just know their pros and cons.

So, read through the following methods on how to cash out Bitcoin. Once you consider the necessary angles, you can decide which method is the best for you!

Using Third-Party Cryptocurrency Exchanges

Some cryptocurrency exchanges don't allow you to deposit funds using fiat money – however, most do. Just make sure to double-check it when learning how to cash out Bitcoin with a certain crypto exchange!

If you decide to cash out your Bitcoin using a broker exchange such as Coinbase, then it'll normally take about 1-5 days for the money to reach your account. For EU customers, payments are made via SEPA (withdrawals paid in Euros). However, if you want to sell Bitcoin for USD, brokers normally use the SWIFT payment method.

To make sure brokers don't break money laundering laws, you'll need to follow some rules. Notably, you'll need to withdraw to the same bank account that you deposited with. If you've never deposited fiat onto a broker exchange, then you'll more than likely need to make (at least) one deposit first.

So, this is how turning Bitcoin into cash works: you deposit your Bitcoin into the crypto exchange, then, once the exchange has received your Bitcoin, you can request a fiat currency withdrawal. The most common way to do this is via a bank (wire) transfer. While it's a basic rundown of what you can expect, there are a few things you need to know. In this step-by-step I'll show you how to withdraw Bitcoins to cash using crypto exchanges in detail!

Firstly, you'll need to choose a reliable crypto exchange. I highly recommend using Binance, Bybit, or Coinbase since they're the most well-known and trusted platforms in the crypto space. However, you can choose other crypto exchanges if you want to try something different.

	BINANCE	BYBIT
Pros	A very well-known crypto exchange platform More than 500 different cryptos available Two-factor authentication P2P trading option Emphasis on security and KYC Supports fiat-crypto acquisitions	Very low trading fees Exceptional functionality Mobile trading app Helpful customer support Up to 100x leverage
Cons	Might be a bit difficult for beginners	Might have a steep learning curve
Value For Money
Customer Support
	Visit site Read review	Visit site Read review

Table: Pros and cons of the Binance and Bybit cryptocurrency exchanges

Either way, you'll need to sign up and go through the KYC process so that your account is verified. Afterward, you can browse through the different trading options on your chosen crypto exchange and see what it offers! Don't get overwhelmed if a platform has numerous features available – simply focus on direct deposits and withdrawals to turn your Bitcoin into cash.

So, you'll need to navigate to the deposit tab and submit your crypto. Afterward, you can request a withdrawal in your preferred fiat currency. You'll find this option among other features of your crypto exchange. Make sure you understand the associated fees and limits a crypto exchange has in place to avoid unexpected costs!

Turn Bitcoin Into Cash Using Binance

If you decide to go with Binance as your crypto exchange, you'll enjoy a smooth experience of turning your Bitcoin into cash! Binance is one of the most popular exchange platform for buying and selling Bitcoin. It tends to process more Bitcoin transactions than any other exchange and have a massive customer base of over 200 million. Here are a few things to consider before making your first deposit and withdrawal:

• Withdrawal methods: Binance lets you sell Bitcoins for cash which you can then withdraw into your bank account. You can only cash out your Bitcoin into a bank account that you have already used to buy cryptocurrency on Binance. So, if you haven’t done this yet, I recommend purchasing a small amount of cryptocurrency first.
• Fees: The fees depend on the country in which your bank is located. For example, if you want to sell Bitcoin for USD, a SWIFT transfer is $15.
• Cash out times: Withdrawal times also depend on the country where your bank is located. In general, withdrawals normally take between 2-4 working days.

To make things a little easier for you, I'll now show you how to cash out Bitcoin at Binance.

Step 1: First, you'll need to open an account with Binance, pass the KYC checks, link your bank account, and make a deposit. If you need help on how to do this, view this guide here. If you've already done this, proceed to step 2!

Step 2: Once you've set up your account, you'll need to send your Bitcoin to your Binance Bitcoin address! To do this, from your dashboard, click the "Deposit" button, select Bitcoin, and then the network which you'd like to receive your coins through (in most cases, it'll be the standard BTC network). You'll then be shown your Binance Bitcoin wallet address. This is the address you need to send your Bitcoin to.

Step 3: Once you're all set up, hover over Buy at the top-left of the page, and select Credit/Debit Card.

Step 4: Next, click on Sell.

Step 5: There will also be a withdrawal limit. Since you've already verified your account, your limits will be quite high. However, if you need to increase this, click on Identification on your Binance dashboard, and follow the additional verification instructions!

Step 6: Before you can make the withdrawal, you need to exchange your Bitcoin for your local currency. In my example, I'm exchanging Bitcoin for USD. Enter the amount of Bitcoin that you wish to sell, and the fiat currency equivalent will update.

Step 7: Once you click on Continue, after a few confirmations, your funds will be transferred to your credit/debit card – it's super-quick and convenient!

Congratulations! You now know how to turn Bitcoin into USD, EUR, and other fiat currencies using Binance! Don’t forget, there are many other brokers that you can use.

Sell Bitcoin For USD Using Kraken

There are other popular choices for Bitcoin sellers. For example, Kraken is a well-known exchange that allows fiat currency deposits and withdrawals. It has been around since 2011 and processes the most Bitcoin to Euro transactions. However, they also support other major currencies like USD, CAD, and JPY! Here is some important information you should know about Kraken:

• Withdrawal methods: If you want to turn your Bitcoin into cash with Kraken, you can withdraw to your local bank account.
• Fees: The withdrawal fees at Kraken are very low. For example, a SEPA cash out is only €0.09! And if you want to sell Bitcoin for USD using a local US bank, it’s just $5.00!
• Cash out times: It takes between 1-5 working days for Kraken withdrawals to reach your bank account.

If that sounds like a good crypto exchange for you, let's see how to cash out Bitcoin using Kraken!

Step 1: You'll need to sign up to Kraken and open an account. Don't forget to link your bank account, pass KYC checks, and other verification processes!

Step 2: Afterwards, you'll need to deposit your Bitcoin to your Kraken account. Navigate to your dashboard and click the "Deposit" button, select Bitcoin, and send it to your account!

Step 3: Once you've deposited your Bitcoin, you can go to the "Buy" option and select the appropriate crypto market. It can be BTC to USD or other fiat currency of your choice. Notably, you should check whether Kraken supports your preferred fiat currency before committing to any transactions.

Step 4: Sell your Bitcoin to turn it into cash! Also, check withdrawal limits and any associated fees so that you're aware of them.

That's it! Using a crypto exchange when cashing out Bitcoin is straightforward. Exchanges like Binance or Kraken is a great choice for the majority of people since they're trustworthy and provide robust security measures. I recommend checking them out!

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Use a Peer-to-Peer (P2P) Platform

Some people prefer the more anonymous and less time-consuming approach, so let me introduce you to how to sell Bitcoin for cash using a peer-to-peer platform!

Also, if you don’t like the thought of having to wait three days to cash out Bitcoin, you should consider using a peer-to-peer selling platform like Binance P2P or Bybit P2P. There was a great option like LocalBitcoins that paved the way to the current P2P platforms where you could sell Bitcoin for USD. Unfortunately, the website has closed down as of writing this article.

P2P platforms encompass what cryptocurrencies stand for, and that's covering peer-to-peer online and anonymous transactions.^[1] Using a well-known crypto exchange like Binance and its P2P option gives you a peace of mind knowing your transactions are secure when you sell Bitcoin for USD.

So, P2P selling is relatively safe if you know what you’re doing. However, it’s important to be aware of fraudsters. For example, LocalBitcoins offered a good level of safety because of their escrow service. This kept your Bitcoins locked until you confirmed the payment had been received from the buyer.

I bet you’re still a little confused as to what an escrow is, so let’s use an example:

1. John wants to buy 1 Bitcoin. As he is from the UK, he searches for sellers in his country.
2. John sees that Mike is selling 1 Bitcoin at a good price, and he also accepts bank transfer as a payment option.
3. John sends his request for 1 Bitcoin to Mike, and Mike accepts.
4. Mike puts his 1 Bitcoin into the escrow. This holds the Bitcoin until John transfers the money to Mike.
5. John transfers the agreed amount into Mike’s bank account.
6. When Mike has received the payment, he releases the Bitcoins from the escrow, which is then sent to John’s account.

That’s it! Now you know how to sell Bitcoin for cash using a common P2P exchange! This process is more or less the same across different P2P platforms, so you're good to go. Nevertheless, I'll include some of the recommended P2P platforms with detailed guides to help you get started.

How to Cash Out Bitcoin Using Binance P2P

Now that you have at least a general idea about how to cash out Bitcoin, let me show you how to do it using a peer-to-peer exchange, Binance P2P. It lets you buy and sell Bitcoin for USD by connecting you with various sellers, vendors, and other merchants. Let's see how to do it.

Step 1: Create an account on Binance and sign in to its P2P platform.

Step 2: Verify your account by providing the necessary documents.

Step 3: Once your account is verified, choose your preferred payment method. Binance supports over 300 payment methods, so you'll definitely find something you need!

Step 4: Transfer your Bitcoin to your funding wallet. You'll see it among your other Binance wallets.

Step 5: Create an ad to reach buyers and wait for someone to purchase your coins so that you can turn Bitcoin into cash!

That's one of the easiest ways to sell your Bitcoin via a reputable platform. Also, if you're a Binance user, it's a convenient solution for you since you can skip a few steps and go straight to selling your cryptocurrencies!

Turn Bitcoin Into Cash With Bybit P2P

Another option when you're learning how to cash out Bitcoin is using Bybit P2P. It's another well-known and reputable platform that millions of users trust. So, how can you sell Bitcoin for USD using this option?

Step 1: Create an account on Bybit and verify your account.

Step 2: Click on "Buy Crypto" and select "P2P Trading".

Step 3: You'll see a dashboard where you can buy and sell your crypto. Click "Sell".

Step 4: Scroll through available trades and select the one that matches your needs.

Step 5: Complete the transaction by confirming the trade!

Alternatively, you can place an advertisement to sell your Bitcoins for USD. However, Bybit P2P enforces different tiers for advertisers, and you might need to put down a deposit first or pass additional verification checks. Make sure to check out the requirements before placing an ad!

Also, you won't be charged any transaction fees when using Bybit P2P, so you can enjoy easy selling (or buying!) of crypto. Nevertheless, some conditions apply depending on the payment method you choose. Bybit offers all the necessary information about it, so make sure to read it before completing a transaction.

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How to Cash Out Bitcoin: The Case of LocalBitcoins

While LocalBitcoins discontinued its operations, it has been an important P2P platform since its creation. LocalBitcoins was created in 2012 and supported almost every country in the world. So, no matter where you were from, you should have been able to find buyers to sell your Bitcoin for USD.

When selling Bitcoins to other people on LocalBitcoins, you could have decided which payment method you wanted the buyers to use. These include:

• Cash deposit: You could have asked the buyer to deposit cash into your bank account. However, you should always ask them for proof of ID and proof of payment before releasing your Bitcoins to anyone!
• Bank transfer: You could have asked the buyer to send you a bank transfer payment. Before diving into the topic of how to cash out Bitcoin, you should have always requested proof of ID from the buyer. Once you have received the money, you can release the Bitcoins to them.
• Meet in person for cash: You could have arranged to meet up with a buyer who was local to you, and they would have paid you in cash for your Bitcoins.

• Local Bank Transfer;
• International Bank Wire;
• PayPal;
• Skrill;
• Payoneer;
• Western Union;
• Gift Vouchers;
• Web Money;
• Bank Cash Deposit;
• Neteller.

Sellers who knew how to cash out Bitcoin could have also chosen the price they would have liked to sell their Bitcoin for. You could have done this by creating an advertisement, which charged you a fee of 1% of the total sale. However, if you sold to a buyer that has listed the price they wanted to pay, there are no fees.

There was also a rating system like eBay, where you could have left feedback for the buyer or seller. This helped you to remain safe when choosing a buyer. If you were a beginner, I'd have only recommended selling to buyers who had 100% positive feedback.

Local Bitcoins allowed you to stay anonymous, too (when choosing such payment methods as web money or gift vouchers), especially if you also used a reliable and safe VPN to secure your connection.^[2] However, some sellers decided to ask new buyers (those who had no feedback) to supply identification. It was a crucial part of the P2P process that set the example for the current P2P platforms like Binance P2P or Bybit P2P.

In this step-by-step guide on how to turn Bitcoin into cash using LocalBitcoins, you'll find numerous similarities to Binance or Bybit. That's because P2P platforms operate in the same manner – only some nuances are different!

Step 1: First, you would have needed to open an account at LocalBitcoins. You could have done this by clicking on the Sign Up button.

Step 2: You needed to choose a username and a strong password. You also needed to enter and confirm your email address.

Step 3: Once you were logged in, you needed to click on Sell Bitcoins at the top of the page.

Step 4: Then you had to choose the country where your ideal buyers were located. I'd have recommended using your own country (of course), however, this was up to you. You also needed to enter the amount of Bitcoin you wanted to sell.

Step 5: One of the easiest methods when learning how to cash out Bitcoin was using PayPal. The buyer had to have a 100% feedback rating and had to have completed more than 1,000 trades! This was a sign of a serious, legitimate buyer.

Step 6: You needed to confirm the amount of Bitcoin you wanted to sell and enter your PayPal email address. Then you needed to click on Send Trade Request.

Step 7: Your buyer would then receive a notification to say that you would like to sell your Bitcoins to them. When they accepted, you'd then send your Bitcoins to the LocalBitcoins escrow. So, the buyer wouldn't receive your Bitcoins until they have paid you, and you confirmed they have done so.

Step 8: The buyer should have contacted you to let you know that the funds have been sent. You needed to check that the funds had arrived in your PayPal, then click on Payment Received, and you were finished.

Congratulations! You now know how to cash out Bitcoin using an early P2P exchange, LocalBitcoins.

Once you became more experienced with LocalBitcoins, you could have practiced selling using different payment methods. The good thing was some payment methods allow you to sell your Bitcoins at a higher price — so it was worth getting used to. Nevertheless, Binance and Bybit platforms also offer various features that allow you to sell your crypto and make a decent profit!

	BINANCE	BYBIT
Overall Score	9.8	9.6
Best For	Buying, Trading, and Holding a Wide Variety of Cryptocurrencies	More Advanced Users
Operating Countries	Turkey, Russia, Argentina, Vietnam, Ukraine, + 40 more	Russia, South Korea, United Kingdom, Ukraine, Turkey, +150 more
Latest Coupons	$600 WELCOME BONUS All Binance Coupons	$30,000 IN REWARDS All Bybit Coupons
Verdict	One of the leading crypto exchange platforms in the industry.	A popular crypto derivatives exchange with some super-low trading fees.
	Visit site Read review	Visit site Read review

Table: Main features of the Binance and Bybit cryptocurrency exchanges

It was also a good idea to set up an advertisement. Even though it'd have cost you 1% in fees, you could have set up your own price and chosen your own payment method. In this case, you'd have received a notification from buyers when they wanted to buy from you.

LocalBitcoins was just one of the P2P exchanges that allowed you to cash out your Bitcoin — there were (and still are!) many others. The important thing to remember is that the exchange should have an escrow, and to never send your Bitcoin to a buyer before they have paid!

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Conclusions

If you have read this guide from start to finish, you should now know how to cash out Bitcoin! I've shown you two different methods — the crypto exchange way (Binance, but, it works almost the same with Kraken, Coinbase, Kucoin, and any other top-tier exchange), and also the peer-to-peer way.

They both have their advantages and disadvantages. Crypto exchanges can be more convenient and safe for beginners, whilst P2P platforms allow you to remain anonymous and sell at a higher price. Ultimately, the decision is in your hands since your situation is unique.

So, which did you prefer? Are you going to use a crypto exchange for cashing out Bitcoin, or a P2P exchange? In any case, I wish you luck (and high profits!) when you sell Bitcoin for USD or other fiat currency!

The content published on this website is not aimed to give any kind of financial, investment, trading, or any other form of advice. BitDegree.org does not endorse or suggest you to buy, sell or hold any kind of cryptocurrency. Before making financial investment decisions, do consult your financial advisor.

Scientific References

1. J. A., Donet Donet, C., Pérez-Sola and J., Herrera-Joancomartí: 'The bitcoin P2P network';

2. Z., Xu and J., Ni: 'Research on network security of VPN technology.'